Zenith Energy, the dual listed international oil & gas production company operating the largest onshore oilfield in Azerbaijan, has announced that additional, ongoing geological and reservoir investigations have enabled the Company to identify a new structure in the Middle Eocene and Upper Cretaceous formations of the Jafarli field.
The Jafarli field is a dip-closed anticline, located in the south-east tail of the Muradkhanli anticline in the Yevlakh - Aghjabady depression.
Historically, the primary productive formation in the field has been the Middle Eocene, consisting of volcanogenic clastic layers and fractured marly limestones draping and lapping the Mesozoic underlying structure which is identifiable in the 3D seismic surveys performed in 2008 and 2011.
The identified structure measures approx. 3 sq kms with a significant degree of closure indicated by a thickness of approx. 100 metres.
The study recommends that well C-37's total depth, 3,987 metres, be deepened by approx. 200-250 metres with the following two objectives:
Penetrate sandstone layers found in the adjacent well C-22 where historical well data indicates that initial production was approx. 700 barrels per day from the Middle Eocene formation upon drilling in 1986.
Penetrate the Mesozoic (Upper Cretaceous) formation, which has not been previously tested in this structure to verify its fluid content. The new Cretaceous play could potentially unlock valuable new prospective exploration activity to be performed in the Muradkhanli and Zardab fields.
In order to better evaluate the potential benefits of successful drilling activities the Company has calculated the reserves potential of this structure by hypothesizing certain petrophysical parameters expressed in similar Cretaceous reservoirs located in the north-western part of the Kura basin. The aforementioned reserves calculation has confirmed the Company's intention to proceed with the performance of drilling operations.
Andrea Cattaneo, Chief Executive Officer, commented: 'I am delighted to welcome Narmina to the team, and I am confident that her comprehensive skillset and vast experience will be of great assistance to us during the crucial period ahead. As can be seen from the application of our geological re-evaluation of our assets in Azerbaijan which has resulted in the identification of a new geological structure in the Jafarli field, we are maximising our level of preparation and geological understanding. This is extremely important in order to achieve the highly material upside we believe our Azerbaijan asset can deliver through successful drilling activities at a time of very favourable oil prices.'